Solved

Manuka Ltd Has Seven Employees Who Are Entitled to Long

Question 29

Multiple Choice

Manuka Ltd has seven employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below:
Manuka Ltd has seven employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below: Other information collected. The inflation rate for the foreseeable future is 2 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. Based on the information provided, what should the balance of the long service leave provision account be (rounded to the nearest dollar) ? A) $47,163 B) $47,146 C) $47,545 D) $20,991 E) None of the given answers.
Other information collected.
Manuka Ltd has seven employees who are entitled to long service leave (LSL) . The LSL can be taken after 15 years of service, at which time the employee is entitled to 13 weeks' leave. After 10 years the employee is entitled to a pro rata cash payment on leaving the company. Information about the employees is set out below: Other information collected. The inflation rate for the foreseeable future is 2 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. Based on the information provided, what should the balance of the long service leave provision account be (rounded to the nearest dollar) ? A) $47,163 B) $47,146 C) $47,545 D) $20,991 E) None of the given answers.
The inflation rate for the foreseeable future is 2 per cent. The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion. Based on the information provided, what should the balance of the long service leave provision account be (rounded to the nearest dollar) ?


A) $47,163
B) $47,146
C) $47,545
D) $20,991
E) None of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q21: A defined contribution scheme:
A) Moves any actuarial

Q25: Kerry Gill works for Kentucky Enterprises for

Q26: What discount rate does AASB 119 require

Q28: The appropriate accounting treatment for accumulating non-vesting

Q33: According to the former Australian guidance section

Q34: 'On-costs' can be described as:
A) The additional

Q37: Which of the following is not a

Q38: Because of the uncertainties involved in making

Q39: AASB 119 requires which items to be

Q40: The amount represented as a current liability,'Provision

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents